New stock news | Befar Group (601678.SH) once again submitted an application to the Hong Kong Stock Exchange to become China's largest producer of granular caustic soda.

According to the disclosure of the Hong Kong Stock Exchange on April 24, Befar Group Limited (601678.SH), also known as Befar Group, has once again submitted its listing application to the Hong Kong Stock Exchange main board, with Huatai International and Jiangu International as its joint sponsors. Company Profile According to the prospectus, the company is a comprehensive chemical group in China with a focus on technological innovation and green low-carbon drive. The company was founded in 1968 and has been deeply involved in the chemical industry for over 50 years. The company's business segments include chlor-alkali chemicals, C3/C4 chemicals, and wet electronics chemicals, with a comprehensive product portfolio. The core products of the company include caustic soda, epichlorohydrin, MTBE, and electronic grade hydrofluoric acid. According to Frost & Sullivan data, based on 2025 revenue, the company is the largest producer in China of granular caustic soda, food-grade flake caustic soda, trichloroethylene, tetrachloroethylene, and chloropropylene, as well as the second largest producer of epichlorohydrin, with market shares of approximately 38.1%, 71.9%, 36.0%, 41.4%, 23.8%, and 9.5% respectively. The company is also one of the few domestic producers of electronic grade hydrofluoric acid used in advanced semiconductor processes. Benefiting from rich upstream resources (including salt and electricity), the company has established a diversified synergistic product portfolio, covering downstream applications such as alumina and epoxy resins. In its product lines, the company implements industrial synergy and resource recycling, complementing and reusing production processes and resources of different products. This model not only improves the company's resource utilization efficiency, reduces waste emissions, and lowers overall production costs, but also enhances the company's ability to withstand industry cyclic fluctuations. The company is also promoting a model that combines new energy-related businesses with its core chemical business to accelerate the green low-carbon transformation of energy supply, enabling the company to seize opportunities brought by global energy structural transformation and low-carbon economic transformation. Financial Information Revenue In 2023, 2024, and 2025, the company's revenue is approximately RMB 7.306 billion, RMB 10.228 billion, and RMB 14.836 billion respectively. Profit In 2023, 2024, and 2025, the company's annual profit is approximately RMB 399 million, RMB 217 million, and RMB 235 million respectively. Gross Profit Margin In 2023, 2024, and 2025, the company's gross profit margin is 16.7%, 6.4%, and 9.8% respectively. Industry Overview In 2025, the sales revenue of China's Shanghai Chlor-alkali Chemical industry reached RMB 344.5 billion, with a compound annual growth rate of -1.7% from 2021 to 2025. It is expected that by 2030, the sales revenue of China's Shanghai Chlor-alkali Chemical industry will reach RMB 420.1 billion, with a compound annual growth rate of 4.0%. PVC and caustic soda are the main products of the Shanghai Chlor-alkali Chemical industry. In 2025, PVC and caustic soda accounted for 41.0% and 38.9%, respectively, of the industry's market size based on sales revenue. Chloropropylene, trichloroethylene, tetrachloroethylene, epichlorohydrin, and epichloropropane (chlorine-alcohol method) accounted for 0.6%, 0.3%, 0.2%, 2.5%, and 1.5% respectively. In 2025, China's epoxy propane has a production capacity, output, and consumption of 9.7 million tons, 6.4 million tons, and 5.7 million tons respectively, with compound annual growth rates of 22.6%, 15.5%, and 12.2% from 2021 to 2025. The sales revenue of China's epoxy propane increased from RMB 44.2 billion in 2021 to RMB 35.7 billion in 2025, with a compound annual growth rate of -5.2%. In 2020, the COVID-19 epidemic caused some epoxy propane producers to suspend production, and by 2021, some producers had not fully recovered from the impact of the epidemic. At the same time, the rapid rebound in downstream demand for epoxy propane in 2021 led to supply shortages, driving up average prices and sales revenue. Subsequently, with the gradual commissioning of production capacity, the average price of epoxy propane decreased in 2022, resulting in a decrease in sales revenue. It is expected that by 2030, the production capacity, output, and consumption of China's epoxy propane will reach 16.3 million tons, 11.0 million tons, and 9.6 million tons respectively, with compound annual growth rates of 10.9%, 11.4%, and 11.0% from 2025 to 2030. China's epoxy propane sales revenue is expected to reach RMB 73.5 billion, with a compound annual growth rate of 15.5% from 2025 to 2030. In 2025, China's propylene has a production capacity, output, and consumption of 77.7 million tons, 60.8 million tons, and 62.9 million tons respectively, with compound annual growth rates of 11.2%, 10.0%, and 9.4% from 2021 to 2025. China's propylene sales revenue decreased from RMB 86.9 billion in 2021 to RMB 52.2 billion in 2025, with a compound annual growth rate of -12.0%. From 2021 to 2022, the rise in propylene prices and strong downstream demand collectively drove the propylene market's sales revenue growth. From 2022 to 2025, continuous industry capacity expansion led to oversupply, resulting in a decrease in sales revenue for the propylene market. It is expected that by 2030, China's propylene will have a production capacity, output, and consumption of 1.05 billion tons, 76.8 million tons, and 77.2 million tons respectively, with compound annual growth rates of 6.2%, 4.8%, and 4.2% from 2025 to 2030. China's propylene sales revenue is expected to reach RMB 77.3 billion by 2030, with a compound annual growth rate of 8.2% from 2025 to 2030. The sales revenue of China's wet electronics chemicals industry increased from RMB 158.9 billion in 2021 to RMB 268.9 billion in 2025, with a compound annual growth rate of 14.1%. It is expected that by 2030, the sales revenue of China's wet electronics chemicals industry will reach RMB 437.9 billion, with a compound annual growth rate of 10.2% from 2025 to 2030. General wet electronics chemicals are the main products of the wet electronics chemicals industry, with sales revenue in China reaching RMB 236.1 billion in 2025. Based on 2025 sales revenue, electronic grade hydrofluoric acid accounted for 15.8% of the sales revenue of the wet electronics chemicals industry and 18% of the sales revenue of the general wet electronics chemicals industry. Board of Directors Information After compilation, the company's board of directors will consist of nine directors, including four executive directors, one non-executive director, and four independent non-executive directors. The term of office for the company's directors is three years and can be re-elected for consecutive terms after the term of office expires. Ownership Structure As a publicly listed company on the Shanghai Stock Exchange, the company's ownership structure is diversified, and changes in the company's ownership structure may occur due to the buying and selling of A-shares by shareholders or investors. From January 1, 2024, until the last practicable date (April 20, 2026), the largest single shareholder group of the company (including Binzhou and Yi and Binzhou and Yuan (as the general partner of Binzhou and Yi)) held approximately 10.96% of the company's issued share capital. Binzhou and Yi are owned by Shandong Bin Hua Investment Co., Ltd. (as its limited partner) with 99.9% and by Binzhou and Yuan (as its general partner) with 0.1%. Binzhou and Yuan are owned by Mr. Jiang, Mr. Zhang Liying, and Mr. Li Mintang with 40%, 30%, and 30% respectively. According to the company's knowledge, there are no agreements or voting arrangements between the shareholders of Binzhou and Yuan. Intermediary Team Joint Sponsors: Huatai Financial Holdings (Hong Kong) Limited, Jiangu International Financial Limited; Legal Advisers: JunHe LLP, Beijing Tongshang Law Firm; Joint Sponsors and Compiled Legal Advisers: King & Wood Mallesons; Auditors and Reporting Accountants: KPMG LLP; Transfer Pricing Adviser: KPMG Enterprise Consulting (China) Co., Ltd. Qingdao Branch; Tax Adviser: Guo Fu Hao Hua (Shandong) Tax Consultants Limited; Industry Adviser: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch.